NPS Investment Options

Risky option

The higher allocation in this option will be in equity. To decrease the risk, equity investment is allowed only in index funds which track Sensex or Nifty with the equity exposure is capped at 50 per cent.


In this option most of the exposure would be to corporate debt and fixed income securities with some exposure in equity and govt securities. It will be moderately risky and rewarding.


In this option mainly the investment will be done in government securities, and very little will be invested in equities.

Default option

Allocation will be decided on your age, with high equity allocation when you are young, which reduce as your age increases. You can also decide your asset allocation as per your risk appetite. Moreover, individual will also have choice to choose from 3 different asset classes: equity (E type), Govt securities (G Type) and Credit risk-bearing debt or fixed income based investments (C Type).

Active Choice investment

Investor can mix E, C and G type options as per their choice proportionately.

Auto Choice investment

This is auto choice life cycle fund and the investment allocation will be done based of investor’s age. In this scheme, equity portion (Asset class E) will be 50 per cent till age 35 after which it will reduce 2 per cent per year until it becomes 10 per cent by age 55. Credit risk portion (Asset class C) will be 30 per cent till age 35 after which it will reduce 1 per cent per year until it becomes 10 per cent by age 55.

  • Investor will have option of investing monthly or quarterly, but minimum 4 investments in a year is compulsory.
  • As per the notification by PFRDA, currently only half of the investment can go into equities, even if investor chooses the equity type funds. This limit will only be reviewed after a year.
  • There will be regular account statements to keep information transparent.

List of Pension Fund Managers (PFMs)

  • HDFC Pension Management Company
  • ICICI Pension Fund Management Company
  • Kotak Mahindra Pension Fund
  • LIC Pension Fund
  • Reliance Capital Pension Fund
  • SBI Pension Funds
  • UTI Retirement Solutions